7-Eleven owner's shares spike on report of new buyout offer / Photo: Richard A. Brooks - AFP/File
NYSE - LSE
| CMSC | -0.67% | 24.565 | $ | |
| SCS | -1.33% | 13.54 | $ | |
| BCE | -1.29% | 26.675 | $ | |
| BCC | -2.58% | 148.67 | $ | |
| GSK | -0.71% | 33.91 | $ | |
| RIO | -1.63% | 61.97 | $ | |
| NGG | -1.12% | 62.56 | $ | |
| JRI | -0.83% | 13.26 | $ | |
| RYCEF | 0.44% | 6.8 | $ | |
| BTI | 0.52% | 37.525 | $ | |
| BP | -1.52% | 28.88 | $ | |
| AZN | -0.73% | 65.92 | $ | |
| RBGPF | 1.33% | 61 | $ | |
| VOD | -0.28% | 8.885 | $ | |
| CMSD | -0.43% | 24.475 | $ | |
| RELX | 0.46% | 46.785 | $ |
7-Eleven owner's shares spike on report of new buyout offer
Shares in the Japanese owner of 7-Eleven surged Wednesday following reports that Canada's Alimentation Couche-Tard (ACT) had hiked its takeover offer by almost 20 percent.
Japan's biggest retailer Seven & i last month rejected ACT's initial offer, saying the $40 billion proposal undervalued its business and could face regulatory hurdles.
If realised, it would be the biggest-ever foreign buyout of a Japanese firm.
But Bloomberg News and Japan's Nikkei business daily reported Wednesday that ACT, which owns the Circle K brand, had upgraded its offer to $18.19 per share, or a total of around seven trillion yen ($47.2 billion).
Shares in Seven & i jumped nearly 12 percent in early trade, before settling at up 4.7 percent by mid-morning.
The new offer was sent to Seven & i on September 19, the reports said, adding that no substantive negotiations have taken place since then.
Seven & i declined to comment on the reported move when contacted by AFP.
While 7-Eleven began in the United States, the franchise has been wholly owned by Seven & i since 2005.
7-Eleven is the world's biggest convenience store chain and operates more than 85,000 outlets globally.
Around a quarter of those are in Japan, where it is a beloved institution, selling everything from concert tickets to pet food and fresh rice balls.
Seven & i will announce its quarterly earnings on Thursday, with the CEO scheduled to address the media.
Couche-Tard runs nearly 17,000 convenience store outlets, including Circle K, worldwide.
By purchasing 7-Eleven, it is seeking to become "truly global", said Kai Li, a professor and Canada Research Chair in Corporate Governance at UBC Sauder School of Business.
"Couche-Tard has done well with Circle K acquisitions, expanding its footprint in the United States," she told AFP.
But "such a purchase might raise antitrust concerns" given that the combined entity would have "more market power" and could drive smaller operators out of business, Li said.
A.Wulhase--HHA
